General Motors Faces Pressure to Present Restructuring Plan for Adam Opel AG

General Motors Corporation is facing pressure to present a restructuring plan for its Adam Opel AG unit before governments decide how much money to provide to the struggling automaker. German Deputy Economy Minister Jochen Homann stated on Monday that GM should present its plan before governments make a decision, citing that the situation has changed since GM backed out of a deal to sell Opel to Magna International Inc. and Sberbank. The German government had initially agreed to provide EUR4.5 billion in restructuring funds, but officials are now reconsidering this plan.

Key Takeaways:

• General Motors is facing pressure to present a restructuring plan for its Adam Opel AG unit before governments make a decision on financial aid.
• The plan was previously intended to be presented as part of a deal to sell Opel to Magna International Inc. and Sberbank, but GM backed out of the deal.
• German Deputy Economy Minister Jochen Homann stated that the situation has changed since GM's decision to keep Opel.
• The German government had initially agreed to provide EUR4.5 billion in restructuring funds for Opel, but officials are now reconsidering this plan.
• The European Union ministers are meeting in Brussels to discuss GM's plan for Opel.
• The situation at Opel is critical, with Homann stating that it's a "new situation, so we are starting from the beginning."

Statistics:

• EUR4.5 billion: the amount of restructuring funds the German government had initially agreed to provide to Opel.
• $48.30: the price of Magna International Inc. stock on November 6, 2009, when the latest Comtex SmarTrend Alert indicated an uptrend.
• 2004-2009: the period during which Comtex News Network, Inc. has copyright over the SmarTrend trademark.

Sources:

• Dow Jones Newswires
• Comtex News Network, Inc.
• European Commission